Advertisment
The S&P 500 dropped on Wednesday after the U.S. government shut down, raising fears of a longer-than-normal stoppage that weighs on an already fragile economy. Equities were also under pressure after the latest ADP report showed a surprise decline jobs for September.
The Dow Jones Industrial Index dipped 5.41 points to 46,392.19.
The much-broader index slid 7.62 points to 6,680.84
The tech-heavy NASDAQ retreated 21.16 points to 22,638.85.
Bank stocks fell broadly on concern about a slowing economy after the stoppage. Citigroup and Wells Fargo each shed more than 1%. JPMorgan Chase, Goldman Sachs and Morgan Stanley were also lower. Tech shares that have led the bull market, including Oracle, declined as part of a risk-off move.
Data from processing firm ADP showed that private payrolls fell by 32,000 last month, well below the gain of 45,000 that economists polled by Dow Jones had estimated.
This reading, which signifies the biggest drop since March 2023, takes on even greater importance now that there’s an economic data blackout because of the shutdown.
The U.S. government shut down after attempts made by the Republican-controlled Senate to secure a temporary spending bill failed on Tuesday. Democrats are hoping to use the measure to codify an extension of health care tax credits for millions of Americans.
Prices for the 10-year Treasury recovered, lowering yields to 4.11% from Tuesday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices shed 54 cents to $61.83 U.S. a barrel.
Gold prices hiked $24.60 to $3,897.80 U.S. an ounce.
